I have been following the development of this nest and have found a very information website which is answering the questions I have as I watch the nest change. I found this very fascinating: "Life Cycle and Habits

Paper wasps and hornets are social insects, living in colonies containing workers, queens and males. Colonies are annual with only inseminated queens overwintering. Fertilized queens occur in protected places such as houses and other structures, hollow logs, in stumps, under bark, in leaf litter, in soil cavities, etc. Queens emerge during the warm days of late April or early May, select a nest site and build a small paper nest in which eggs are laid. One egg is laid in each cell. As she adds more cells around the edge, eggs are deposited. Larvae in the center are older with the younger larvae further out. It is the cells at the rim of the nest which contain eggs. After eggs hatch, the queen feeds the young larvae. When larvae are ready to pupate, cells are covered with silk, forming little domes over the individual openings. Larvae pupate, emerging later as small, infertile females called "workers." By mid-June, the first adult workers emerge and assume the tasks of nest expansion, foraging for food, caring for the queen and larvae and defending the colony. Remember with paper wasps, the nest is the work of a single female, has a single layer or "tier" of cells and is not enclosed by envelopes. In hornets, the nests usually consist of a number of stories or "tiers," one below the other and completely enclosed by spherical walls. Each cell may be used for two or three successive batches of brood.

Adult food consists of nectar or other sugary solutions such as honeydew and the juices of ripe fruits. Paper wasps and hornets also feed on bits of caterpillars or flies that are caught and partially chewed before presenting to their young. "
The site is: http://ohioline.osu.edu/hyg-fact/2000/2077.html